Op/Ed: I’ll Be Betting Keeneland, And So Should You

[Chief Stipe]

When Keeneland raised its takeout for the 2017 fall meet, I did what consumers often do when a company raises the price of its product. I shopped elsewhere. I did not push as much as $1 through the windows during the meet. Like most horseplayers, I had never before reacted when a track dipped deeper into our pockets by raising the takeout, which is, essentially, raising the price of making a bet. I was never happy about it, and I may have screamed in print about still another track gauging its customers, but I was always among the endless list of saps that took the punishment and kept betting away on Highway Robbery Downs.

But everyone has a breaking point and Keeneland Fall 2017 was not just mine, but something that seemed to push a lot of gamblers over the cliff. Keeneland was not just another track raising its takeout; it was a track that represented everything that was good about the sport, and that included treating its fans right. They were always the guys wearing the white hats until they weren’t. That’s why Keeneland raising takeout was unsettling.

It didn’t even seem to particularly make sense. Keeneland is a non-profit organization that doesn’t have any shareholders to answer to. The bottom line matters, but not like it does at a place like Churchill Downs, which raised its takeout in 2014. Keeneland management explained that its reasons for raising the take was that it had hoped to bring in extra revenue in order to raise purses, but purses at Keeneland have always been among the best in the sport and the track has always put out a good product.

I wasn’t the only one who felt that way. Apparently, horseplayers actually do have a breaking point. Keeneland’s handle fell by 8.4% during the meet with all sources handle declining by a total of $11.2 million. It was impossible to point to any other factor for the decline other than the increased rate.

It didn’t happen overnight, but Keeneland did the right thing and the sensible thing. In February, management announced that the takeout rates on win, place, show and exacta wagers would return to their pre-2017 fall levels. They kept the takeouts on trifecta, superfecta, pick three and pick four at the 2017 fall rates.

Keeneland’s decision was a major and rare win for the horseplayer. It was the equivalent of No. 16 UMBC beating No. 1 Virginia in the first round of the NCAA tournament. Never before had horseplayers stood up to a track the way they did last fall at Keeneland and never before had a major track rescinded a takeout increase. Keeneland Fall was a turning point in a battle that had previously been completely one-sided.

But this story is far from over and the spring meet, which begins Friday, is also going to be vital when it comes to how not just Keeneland, but all tracks, look at their customers and the issue of takeout.

The last thing that anyone should want is for Keeneland to have a bad meet handle-wise. That would send a message that the fall figures were a fluke unrelated to the takeout hike. The very best thing that could happen is for Keeneland to have a phenomenal meet when it comes to wagering. That would reinforce the message that handle and takeout are closely intertwined and that the customer will react with an increased betting level when given a price break. That will cause the next track that wants to raise its takeout to think twice and may encourage some tracks to follow Keeneland’s lead and lower their take.

The Horseplayers Association of North America (HANA) has done an excellent job of becoming an effective voice for the bettor and it smacked Keeneland around pretty good last fall, calling for a boycott. Likely, HANA’s saber rattling had a significant and negative effect on Keeneland’s handle. Yes, HANA had some kind things to say after Keeneland lowered its takeout in many of its pools. Yes, it would have been nice for Keeneland to return all takeout rates to their prior levels. But it’s disappointing that HANA has been a lot quieter this spring than it was last fall. The organization needs to get behind Keeneland and encourage all horseplayers to support this meet and reward Keeneland for issuing what is essentially a mea culpa by lowering the bite on the gambler.

So if HANA won’t do it, I will. The Gulfstream championship meet is over, Derby Week is not yet upon us and NYRA racing won’t bloom until Belmont opens. Keeneland has great racing, full fields and management has done something tracks never seem to do, listen to the complaints of their customers. The historic Lexington track has re-earned your support. The Keeneland spring meet should be the primary focus of everyone who plays this game. I know it will be mine.

 

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